Oklahoma Non-Compete Agreement
Oklahoma voids employee non-compete agreements under 15 O.S. Section 219A. Only a customer non-solicit or business sale holds. Attorney review available.
Introduction
A non-compete agreement is a contract in which an employee promises not to compete after leaving, but Oklahoma flips that default: 15 O.S. Section 219A affirmatively permits a former employee to engage in the same or a similar business as the former employer. In Oklahoma an employee non-compete is void. Under 15 O.S. Section 219A, a person who agrees not to compete with an employer after the job ends is still permitted to engage in the same business or a similar business as the former employer, and any contract provision in conflict with that rule is void and unenforceable. The most an employer can hold a former employee to is a narrow limit on directly soliciting the established customers of the former employer (Section 219A) and a limit on soliciting the employer's employees or contractors (Section 219B). A clause that simply bars a former employee from competing is unenforceable, and no salary level and no amount of consideration can change that. Oklahoma allows a real covenant not to compete only in two transactional settings: the sale of a business's goodwill (Section 218) and the dissolution of a partnership (Section 219), each limited to a specified county and contiguous counties or a city or town. Oklahoma employers protect confidential information through a confidentiality or trade-secret agreement and the Oklahoma Uniform Trade Secrets Act (78 O.S. Section 85 et seq.) instead. This page explains Oklahoma's rule and offers a template limited to the situations where a non-compete is actually enforceable here. It is a state-law overview, not a promise that any given clause will hold up.
Key Things to Know
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A non-compete tries to stop a former employee from competing after the job ends. In Oklahoma that restraint is void under 15 O.S. Section 219A, and the most an employer can enforce is a narrow limit on soliciting its established customers.
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Oklahoma voids employee non-competes under 15 O.S. Section 219A: a former employee is permitted to engage in the same or a similar business as the former employer, and any conflicting contract provision is void and unenforceable. Section 217 voids restraints of trade generally, except the two transactional exceptions.
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Oklahoma has no salary or income threshold that makes an employee non-compete valid. The restraint is void regardless of how much the employee earns; you cannot buy or bargain your way into an enforceable employee non-compete here.
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What an Oklahoma employer can actually enforce against a former employee is narrow: a limit on directly soliciting the former employer's established customers (Section 219A) and a limit on soliciting its employees or independent contractors (Section 219B). Neither is a full non-compete.
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Oklahoma allows a genuine covenant not to compete only in two settings: the sale of a business's goodwill (Section 218) and a partnership dissolution (Section 219). The geography is framed in county terms, a specified county and contiguous counties, or a city or town, so long as the buyer or remaining partners carry on a like business there.
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Because an employee non-compete is void, Oklahoma courts do not rewrite it to make it enforceable; the most that survives is the permitted customer non-solicit. In the sale and partnership exceptions, an overbroad territory may be narrowed by statute to the county comprising the primary place of the business and contiguous counties.
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Oklahoma employers protect confidential information through a confidentiality or non-disclosure agreement and the Oklahoma Uniform Trade Secrets Act (78 O.S. Section 85 et seq.), not through a non-compete. That, plus the permitted non-solicits, is the lawful way to protect trade secrets and customer relationships here.
Key decisions before you file
Before you file a Non-Compete Agreement in Oklahoma, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.
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Oklahoma Requirements for Non-Compete Agreement
In Oklahoma an employee non-compete is void. Under 15 O.S. Section 219A a former employee is permitted to engage in the same or a similar business as the former employer, and any conflicting contract provision is void and unenforceable. Section 217 voids restraints of trade generally. There is no reasonableness test that saves an employee non-compete in Oklahoma.
Oklahoma has no salary or income threshold that makes an employee non-compete enforceable. Unlike states that permit non-competes above a wage floor, Oklahoma voids the employee restraint regardless of compensation (15 O.S. Section 219A). Do not rely on any other state salary figure when the worker is in Oklahoma.
The most an Oklahoma employer can enforce against a former employee is a narrow customer non-solicit. Under 15 O.S. Section 219A the former employee may work in the same field but may not directly solicit the sale of goods or services to the former employer's established customers. Draft the restriction to match that statute rather than as a general bar on competition.
Oklahoma separately permits an employee non-solicit under 15 O.S. Section 219B: a provision barring a former employee or contractor from soliciting the employer's employees or independent contractors is not treated as a restraint of trade, and Sections 217, 218, 219 and 219A do not apply to it. This is enforceable even though a full non-compete is not.
Oklahoma allows a covenant not to compete when a person sells the goodwill of a business (15 O.S. Section 218). The seller may agree not to carry on a similar business within a specified county and contiguous counties, or a specified city or town, so long as the buyer carries on a like business there. An overbroad territory may be narrowed by statute to the county that is the primary place of the business and contiguous counties.
Oklahoma also allows a covenant on a partnership dissolution (15 O.S. Section 219). Upon or in anticipation of dissolving the partnership, the partners may agree that none will carry on a similar business within a specified county and contiguous counties, or a specified city or town. As with a business sale, an overbroad territory may be narrowed to the county that is the primary place of the partnership business and contiguous counties.
Because an employee non-compete is void, Oklahoma employers protect confidential information with a confidentiality or non-disclosure agreement and the Oklahoma Uniform Trade Secrets Act (78 O.S. Section 85 et seq.). Combined with the permitted customer and employee non-solicits, this protects trade secrets and customer relationships without restraining where a former employee may work, which is what keeps it lawful in Oklahoma.
The 2024 Federal Trade Commission non-compete rule was set aside by a federal court before it took effect, so it is not currently binding, and its status remains unsettled. Oklahoma does not depend on it: 15 O.S. Section 219A independently voids employee non-competes in Oklahoma regardless of what happens with the federal rule.
Frequently Asked Questions
No, not for employees. Under 15 O.S. Section 219A a person who agrees not to compete with an employer after the job ends is still permitted to engage in the same or a similar business as the former employer, and any contract provision in conflict with that rule is void and unenforceable. Section 217 voids restraints of trade generally. The most an employer can enforce is a narrow limit on directly soliciting the former employer's established customers. A clause that simply bars a former employee from competing is unenforceable in Oklahoma.
For an employee, no length is enforceable, because Oklahoma voids the restraint itself regardless of its duration or geographic scope (15 O.S. Section 219A). There is no reasonable-time test that saves an employee non-compete here. Within the transactional exceptions, such as the sale of a business's goodwill under Section 218 or a partnership dissolution under Section 219, a covenant can run for a period tied to that transaction, limited to a specified county and contiguous counties or a city or town where the business operated.
Two narrow things. Under 15 O.S. Section 219A an Oklahoma employer can bar a former employee from directly soliciting the sale of goods or services to the employer's established customers, and under Section 219B it can bar soliciting the employer's employees or independent contractors to leave. Neither is a full non-compete. The former employee remains free to work in the same field, for a competitor, or to start a competing business, so long as they do not cross those two solicitation lines.
Yes, within limits. Oklahoma permits a customer non-solicit that bars directly soliciting the sale of goods or services to the former employer's established customers (15 O.S. Section 219A), and a separate employee non-solicit that bars recruiting the employer's staff or contractors (Section 219B). These are the enforceable restrictions in Oklahoma. They stop targeted solicitation, not the general right to compete, and they must be drafted to match the statute rather than sweep in all competition.
Only in two transactional settings. Oklahoma allows a covenant not to compete when someone sells the goodwill of a business (15 O.S. Section 218) and when partners dissolve a partnership (Section 219). In each, the seller or departing partner may agree not to carry on a similar business within a specified county and contiguous counties, or a specified city or town, so long as the buyer or remaining partners carry on a like business there. An overbroad territory may be narrowed by statute to the county comprising the primary place of the business and contiguous counties.
They use a confidentiality or non-disclosure agreement and rely on the Oklahoma Uniform Trade Secrets Act (78 O.S. Section 85 et seq.), which lets a business protect and sue over the misuse of trade secrets. Combined with the permitted customer and employee non-solicits, this protects confidential information and customer relationships without restraining where a former employee may work, which is what keeps it lawful in Oklahoma when an employee non-compete would be void.
Generally not for an Oklahoma employee. Oklahoma's public policy under 15 O.S. Section 219A voids the employee restraint, and courts in Oklahoma generally will not enforce a non-compete against a worker here just because it was signed elsewhere or years ago or picks another state's law. The age of the agreement does not matter, because the restraint is void rather than merely expired. A permitted customer or employee non-solicit within Section 219A or 219B may still be enforced.
No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, Oklahoma's own rule under 15 O.S. Section 219A independently voids employee non-competes here, so the federal rule's fate does not change Oklahoma law.